Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Technical Presentation (November 2009)
29 slides from Bluescope Steel's technical presentation, Nov 17, 2009
Slide 1: Analyst Site Visit - Western Port Plant, Hastings
For personal use only Steel Manufacturing Businesses Analyst Site Visit - Western Port Plant, Hastings Aimee Allen, GM Western Port 17th November 2009
Slide 2: Important notice
Important notice For personal use only THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE.
Slide 3: History
History For personal use only Why Western Port ? Milestones • 1968: Feasibility study undertaken for a new steel site • Deep water port • 1970: Joint venture signed and Victorian Government approval obtained • Energy from Bass Strait/Latrobe • 1972: Cold Mill and Metal Coating Line 4 commissioned Va
Slide 4: Western Port Today
Western Port Today For personal use only • Experienced workforce with strong depth of process knowledge • One of Victoria’s safest and environmentally sustainable manufacturing sites • Major employer on the Mornington Peninsula • Production records through the Metal Coating and Paint Lines achieved
Slide 5: BlueScope Steel Divisional Structure
BlueScope Steel Divisional Structure For personal use only Managing Director and CEO Legal (Michael Barron) CFO (Charlie Elias) Paul O’Malley People and Organisational Performance (Ian Cummin) Aus/NZ Steel Australian Coated Australian Manufacturing and Industrial Distribution and North America Asia
Slide 6: Western Port Manufacturing Business
Western Port Manufacturing Business For personal use only Aimee Allen General Manager Louisa Hancock Personal Assistant Elise Latchford Gary Elliott John Waugh Ron Bange Garry Battye Russell Gibbs Richard Millard Manager People & Manager Manager Finance & Manager Manager Manager Quality & Manager Or
Slide 7: Operations – General Site Overview
Operations – General Site Overview For personal use only Slab by Rail Slab from Wharf Hot Water (dedicated ship Treatment Coil Plant delivery slab from Proc’g Slab Storage Coil Storage Hot Strip Port Kembla Pickle Line Steelworks) Mill Five Stand Mill Cold Strip Plant Coil Annealing No 6 Galvanising
Slide 8: Highlights and Successes
Highlights and Successes For personal use only • Record MTIFR result for Western Port in 2008/09 at 1.2 – best ever result ! • Managed market downturn effectively through workforce flexibility and aggressively reducing compressible costs • Over the last five years to 2008/09 we have: o reduced LTIFR
Slide 9: Safety Performance – Our Goal is ZERO HARM
Safety Performance – Our Goal is ZERO HARM For personal use only 30 Lost Time Injury Frequency Rate (LTIFR) 12MMA 25 LTIFR is at 0.8 at end October 2009 20 15 10 5 0 Aug-95 Apr-97 Aug-00 Apr-02 Aug-05 Apr-07 Sep-92 Feb-93 Jul-93 Dec-93 May-94 Oct-94 Mar-95 Jan-96 Jun-96 Nov-96 Sep-97 Feb-98 Jul-98 D
Slide 10: Environment
Environment For personal use only • Re-certified to ISO 14001 October 2008 • EPA Accredited Licence since June 1996 • Third (2006-2011) Environmental Improvement Plan (EIP) with EPA underway • Zero environmental exceedances since March 2007, including the Pickle Line fire • Recycled water project no
Slide 11: Community – Our communities are our homes
Community – Our communities are our homes For personal use only Philosophy Built on Our Bond Mix of Financial Support and Community Involvement Examples: • Engaged and committed Community Liaison Committee • Active member of Western Port Chamber of Commerce & Industry • Strong relationship with Peni
Slide 12: Coated Australia – Annual Capacities
Coated Australia – Annual Capacities For personal use only Western Hot Strip Mill HRC Port 1,400 Pickle Line HRC 1,100 Cold Mill CRC 1,000 Slab Metal Coating Lines Metal Coated 830 Strip Paint Lines Port Kembla Steelworks Painted Strip 330 HRC Coupled Pickled Cold Mill Springhill CRC 990 Metal Coati
Slide 13: Markets – Based on 2008/09
Markets – Based on 2008/09 For personal use only Export Automotive Market Western Port Total (23%) Manufacturing Direct (40%) Service Building & Centres Construction ex SSC (37%) Distributors (Based on actual tonnes invoiced 08/09) Page 13
Slide 14: Our Product Range
Our Product Range For personal use only Across BlueScope Unique to Steel Western Port COLORBOND® ZINCANNEAL® ZINCALUME® AQUAPLATE® GALVASPAN® COLD ROLLED ANNEALED TRUECORE® HOT ROLLED > 1500 mm wide Width of Lines - HSM, MCL6, CPL2 Page 14
Slide 15: Total Costs – compressible costs the focus through site wide initiatives
Total Costs – compressible costs the focus through site wide initiatives Total Costs by Major Category For personal use only $B 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Conversion Costs * Selling and Admin Other Raw Materials Delivery Feed • Cost decreases from initiat
Slide 16: Western Port – taking action to reduce costs
Western Port – taking action to reduce costs For personal use only • Shift pattern changes to match market demand • Sharing of labour across the site to facilitate continuing reductions in annual leave and long service leave • Quality improvements continuing on all units • Discretionary savings acro
Slide 17: Continuing Cost Focus
Continuing Cost Focus For personal use only Conversion Costs per Packed Tonne Financial Benefits * $ per tonne $ Million 2004/05 2005/06 2006/07 2007/08 2008/09 2004/05 2005/06 2006/07 2007/08 2008/09 • Targeting 1% reduction in total costs year on year (which represents approximately a 4% reduction
Slide 18: Hot Strip Mill and Coating Lines Production
Hot Strip Mill and Coating Lines Production For personal use only HSM Tonnes per BlueScope and Silcar Employee 1,200 1,000 • 2008/09 year severely impacted by the Global Financial Crisis 800 • Record year for metal coating line tonnes 600 production in 2007/08 400 • Blueprint projects aimed at 200 ‘
Slide 19: Pickle Line Fire and Recovery
Pickle Line Fire and Recovery For personal use only y Fire occurred in Pickle Line on 13 May 2009 ¾ Pickle process precedes cold rolling ¾ Fire started in pickle tanks ¾ Damage contained largely to pickle tanks and non- structural roof damage - no other process impacted other than pickling y Pickle
Slide 20: Major External Suppliers – Commodities and Services
Major External Suppliers – Commodities and Services For personal use only Supplier / Contractor Commodity / Service Provided Sun Metals Zinc OneSteel Manufacturing Slab Feed Rio Tinto Aluminium Aluminium TRUenergy Natural Gas PPG Industries + Velspar Paint TRUenergy + VENCorp Electricity Akzo Nobel
Slide 21: Capital program aimed at permanent cost reductions, operational security & the environment
Capital program aimed at permanent cost reductions, operational security & the environment For personal use only Project Benefit Timing MCL Coating Mass Control Systems • Reduced excess coating metal FY 2009/10 & Upgrades • Cost Savings FY 2010/11 Implementation Recycle Water Project • Reduction in
Slide 22: Our Focus Moving Forward
Our Focus Moving Forward For personal use only • Manage through the current economic conditions – plans in place and being implemented o CAPEX spend focussed on cost improvements and reliability of assets – SE Water project commenced o Discretionary spend stopped o Inventory reduction plans in place
Slide 23: Process Overview
For personal use only PROCESS OVERVIEW Page 23
Slide 24: Hot Strip Mill
Hot Strip Mill For personal use only Roughing Furnace Finishing Process: Slab from Port Kembla is reheated to 1250°C, then descaled, rough rolled to 25mm thick, coiled at the coilbox to retain heat, finish rolled to customer order thickness, then cooled for metallurgical properties and coiled Output
Slide 25: Pickle Line
Pickle Line For personal use only Preheat Furnace Pickle Tanks Rinse Tanks Dryer Shear Welder Side Trimmer Shear Exit Looper Uncoiler Entry Loopers Recoiler Process: Hot rolled coil is processed through hydrochloric acid tanks to clean scale from the strip and is then side trimmed to the required wi
Slide 26: Cold Rolling Mill
Cold Rolling Mill For personal use only Product Flow Process: Hot rolled pickled coil is fed into the Cold Rolling Mill (five stands) that applies roll force (2500t) and tension to the strip reducing the thickness of the strip by up to 80% Output: Sold as cold reduced uncoated steel, or further proc
Slide 27: Uncoated Circuit
Uncoated Circuit For personal use only Process: Cold reduced coils are Batch Annealed, Temper rolled (Coil Temper Mill CTM) and Tension Levelled (Tension Leveller Recoil Line TLRL) to impart the desired mechanical properties, shape and surface finish Output: Sold as uncoated steel products for the a
Slide 28: Metal Coating Lines (No. 4, and 6)
Metal Coating Lines (No. 4, 5 and 6) For personal use only Skin Passing Process: Cold reduced coils are hot dipped coated with ZINCALUME® coating (Nos 4 & 5 Lines) or galvanised (zinc) coating (No 6 Line) to provide corrosion protection Output: Sold as ZINCALUME® coil or galvanised coil to building,
Slide 29: Paint Lines (No. 2 and 4)
Paint Lines (No. 2 and 4) For personal use only Laminating Process: Uncoated or metal coated strip is thoroughly cleaned and chemically treated to provide best surface to apply a primer coat followed by a finish coat of paint, via roller application, which is then oven cured, CPL2 has a laminator. O
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